Something just happened to the Mosman property markets!

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Albeit a brief visit (28 hours), it is not that often that the world’s most powerful identity lands on our shores where by the sounds of things Australia is set to become the fifty third State of America. With America’s future lies with Asia – Pacific region, Obama says where in an historic address to the Australian Parliament “As President, I have therefore made a deliberate and strategic decision – as a Pacific nation, the United States will play a larger role and long – term role in shaping this region and its future – by upholding core principles and in close partnership with our allies and friends”. He went on to say the region was crucial to US interests, as the world’s fastest growing region – Obama takes aim at China in new Asian world order.

For those who missed the live speech here is the text of Obama’s speech to Parliament I watched it live and I must admit that it was most impressive as he provided an insightful vision as to what lies ahead. Although Australia’s most irrelevant political party didn’t agree as Greens fury at US build – up which should not come as a great surprise. They should stick to just planting trees.

Storm clouds over Europe, but sun is shining elsewhere “The media’s great strength is the speed with which they can bring us myriad details about the latest happening in Greece, Italy or anywhere else. Unfortunately, their great weakness is their inability to digest all that information and summarise what it means. The closest they go is in relaying the opinions of 101 supposed experts from Greece, Britain, America or anywhere else. Listen to more than one or two and you’re soon none the wiser.” The long and the short of this is that consumer sentiments in Australia have adopted a short trem positioning and not a long term outlook.

Was it the ‘Obama Factor’ that triggered the greatest trade volumes seen in 2011 this week for our demographic markets? There is not a single market in the world economy that does not fall under the economic equation of Demand V Supply.

So closely examine these figures we extrapolate each week for our readership.

Source: Domain Property Monitors

MOSMAN – 2088

• Number of houses on the market last week – 168
• Number of houses on the market this week – 136
• Number of apartments on the market last week – 138
• Number of apartments on the market this week – 118

CREMORNE – 2090

• Number of houses on the market last week – 21
• Number of houses on the market this week – 16
• Number of apartments on the market last week – 44
• Number of apartments on the market this week – 34

NEUTRAL BAY – 2089

• Number of houses on the market last week – 21
• Number of houses on the market this week – 15
• Number of apartments on the market last week – 136
• Number of apartments on the market this week – 101

This is anecdotal evidence that all of our property markets are engaging again and these statistics which are the most conclusive in 2011, prove that our property markets have turned. It will be fascinating to see next week’s results to see if this trending continues – I believe it will. What we are identifying is that our expats are now returning it ain’t working: Aussies abandon the ailing UK job market.

Whilst on the media I have long argued here that newspapers can’t charge readers for online content so I was not surprised to read in Business Spectator when Alan Kohler wrote Will Fairfax break the paywall. As you would be aware you have to register to now read (The Australian) online as Rupert Murdoch proposes that Australian’s should pay a subscription to read his papers online. Online is based on the premise of eyeballs and third party advertising where the more eyeballs the more revenue. The Australian behind a paywall, and so far the three month trial has seen its page impressions decline by 25 per cent – far less than might have been expected. Actually, and certainly less than its traffic will decline once it starts charging.”

No wonder Fairfax Media is reconsidering its online position. The problem for News Ltd and Fairfax Media is that they are still “newspaper thinkers” who believe (incorrectly) that you can still double – dip with advertisers and the readership.

Goes to show you can never assume.

Cheers ^__^

8 Responses to “Something just happened to the Mosman property markets!”

Mike – yes they did exchange this week and you are 100 per cent correct we (RWM) made two top end sales this week also. I’m just not sure if it was a miracle week or the market regaining lost confidence. Next week’s sales results will go a long way to explaining just where our market is 🙂

Hi Robert
Trust you are well?
Time, like fashion is a funny thing, and the funnest thing is that the older one gets, much of what was a fashion or fears come back to present themselves again! (excluding technology of course).
I’m mainly referring to this section above: Reasons for delaying their entry into the housing market were:
72.1 per cent said they were worried about the level of debt home ownership would require
44 Per cent said they were delaying purchasing a first home due to economic conditions
20.5 per cent of first home buyers felt that property prices are too high.

When I run my own agency over 30 years ago now the above arguments were pretty much the same. Only difference is the houses we were selling for 165k are now selling for 850k+. One thing I have learn is that good located Aussie property continues to rise and probably will continue to do so in the years to come. Cheers Steve

You are correct as very little changes although I must admit that Generation Y (Millennial Generation, Generation Next, Net Generation, Echo Boomers & Worst Generation) still amazed at the vast range of descriptions they get – are without doubt the hardest to please given their disappointment at what their budget gives them.

Many are just not prepared to give up all their prized possessions to commit to paying a mortgage as they still want to maintain the lifestyle they have become accustomed to!

Heaven forbid instead of the Bali holiday – they could never have a beach holiday on the South Coast in a caravan. Ahh – those were some of the best holidays.

US newspapers are starting to worry. And according to the few Australian publications I have received calls from in the past few months, so are Australian Newspapers. Gen Y just aren’t subscribing, or buying them at all. Why? Well why would they. They have been brought up most of their life seeing information as being free. They use google or online news portals, or just free to air TV to get their news. See some interesting comments from a series of focus groupd conducted in Washington.